Fundamental Concepts In Microeconomics

What does it mean for individuals to have unlimited wants?

Wants refers to a service or good that we desire (Carbaugh, 2017). Wants are said to be unlimited because once they are satisfied another appear. Individuals never get totally satisfied with the variety and quantity of services and goods they consumer. Individuals never get enough, meaning there is always another thing else that they need or want even after satisfying the previous want or need (Carbaugh, 2017). In addition, individuals are not able to have everything they want no matter their social class because the resources are limited and therefore cannot satisfy all his wants and needs. Individuals’ needs keep on changing every now and then because of the fundamental problem of scarcity and the limited resources. Therefore, it is not easy to successfully fulfill all the needs and wants (Carbaugh, 2017).

 

  1. Why can’t individuals have everything they want?

Scarcity refers to the condition where goods, resources and services available to people are limited in relation to the desires and wants for them (Carbaugh, 2017). Goods are therefore manufactured from the limited resources, therefore, the services or goods are also scarce. The combination of the unlimited wants and the limited resources indicates scarcity or shortage (Carbaugh, 2017). Because of the scarcity or shortage, individuals are not able to have everything they want, whenever they want them. They have to make choices because no matter how wealthy a person may be he does not have all the resources he might need to meet all his wants and needs and therefore, he is forced to accept trade-offs. Individuals cannot have everything they want because of unlimited wants and limited resources (Carbaugh, 2017).

 

  1. How do unlimited wants and limited resources lead to individual choice in microeconomics?

The unlimited wants imply individuals means once they are satisfied another appear and therefore, individuals never get totally satisfied with the variety and quantity of services and goods they consume; there is always another thing else that they need or want even after satisfying the previous want or need (Carbaugh, 2017). Limited resources imply the resources are not able to produces all the goods and services that individuals need. Therefore, the services or goods are also scarce. The combination of the unlimited wants and the limited resources indicates scarcity or shortage and therefore, people cannot have everything they want, whenever they want them and has to make choices. They have to accept tradeoffs as they do not have all the resources to satisfy all the wants and needs (Carbaugh, 2017).

 

 

 

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